The Union Cabinet has approved the incentive scheme for the promotion of RuPay Debit Cards and low-value BHIM-UPI transactions (person-to-merchant) for the current financial year. The approved incentive scheme for promotion of RuPay Debit Cards and low-value BHIM-UPI transactions (P2M) in FY 2022-23 has a financial outlay of Rs 2,600 crore.
Significance of This Scheme:
Under the said scheme, acquiring banks will be provided financial incentive, for promoting Point-of-Sale (PoS) and e-commerce transactions using RuPay Debit Cards and low-value BHIM-UPI transactions (P2M) for the current financial year FY 2022-23.
Govt Impetus To digital transactions:
In the financial year 2021-22, the government had approved an incentive scheme in compliance with the budget announcement of FY22 to give a further boost to digital transactions.
In her budget speech last year, Union Finance Minister Nirmala Sitharaman had announced government’s intent to continue the financial support for digital payments. The scheme has been formulated in compliance with the aforesaid budget announcement.
As a result, total digital payments transactions have registered a year-on-year growth of 59 per cent, rising from 5,554 crore in FY2020-21 to 8,840 crore in FY2021-22. BHIM-UPI transactions have registered a year-on-year growth of 106 per cent, rising from 2,233 crore in FY21 to 4,597 crore in FY22.